The FCA has published issue 46 of its Market Watch newsletter which covers market conduct and transaction reporting issues.

In this issue of Market Watch, the FCA provides an overview of the causes of the spike in the price of shares of HSBC Holdings Plc in January this year.

The FCA also covers manipulation in fixed income markets. In particular it lists certain factors that traders and other market participants should consider when determining whether they are able to identify manipulation in the fixed income markets. Such factors include:

  • is the trading based on the view that the securities are cheap/expensive or is the trading itself designed to impact the value of the securities?
  • is the trading of a sufficient volume to cause price movements?
  • does the price revert to the previous levels following this trading?
  • has the firm taken all reasonable steps to identify any potential manipulation attempts and to manage these where relevant?
  • has the firm trained its staff on the potential implications of manipulative trading in fixed income including providing specific examples relevant to this market?

View FCA Market Watch no. 46, 8 July 2014